(TRENTON) – Legislation sponsored by
Assembly Democrats Ruben J. Ramos Jr., Matthew W. Milam, Connie Wagner, Annette
Quijano and Paul Moriarty to save more than a half-million dollars per year by
modernizing the state’s payroll system received final legislative approval
Monday and now heads to the governor’s desk.
The bill (A-720) requires
direct deposit for all state employee compensation on and after July 1, 2014,
and allows counties and county colleges, municipalities, school boards to opt
for mandatory direct deposit for all employee compensation on or after July 1,
2014.
The bill eliminates
administrative costs associated with mailing pay stubs to employees by requiring
that all pay information now be available online via the employee’s assigned
e-mail address.
“It’s the 21st
century and it’s time the state of New Jersey began acting like it,” said Ramos
(D-Hudson). “There’s no excuse as to why the state insists on physically mailing
pay stubs that are sealed in an envelope, printed on paper, stamped and labeled.
This is a recurring administrative cost that the state incurs for thousands of
employees.”
“Employees receiving
direct deposit that have an e-mail account with the state should simply be able
to access their pay and tax information in the office or at home,” said Milam
(D-Atlantic/Cape May/Cumberland). “Let’s save money by moving past the outdated
methods of the past.”
Under this roll-out, the
treasurer will also have the authority to provide exemptions and waivers for
certain employees and departments that cannot accommodate the technological
requirements. By fiscal year 2015, the plan could save an estimated $540,000 per
year.
“Numerous banks offer
free checking with direct deposit,” said Wagner (D-Bergen/Passaic) “This is a
commonsense, cost saving measure.”
“Any plan that can save a
half-million dollars per year without disrupting state services is worth doing,”
said Quijano (D-Union). “With finding costs savings so vital, this is a
must.”
“Most people today have
direct deposit and manage their accounts online. It’s efficient, avoids paper
clutter and will save the state quite a lot of money. It’s a win-win,” said
Moriarty (D-Camden/Gloucester).
The bill allows the
state, a county, a county college, a municipality or a school district to grant
an exemption from the direct deposit requirement on such terms and conditions as
they may deem necessary, and specifically exempt seasonal or temporary employees
from the direct deposit requirement. The bill clarifies that providing any
information concerning net pay, accompanying information and W-2 forms to
employees must be done in compliance with applicable federal law, and must be
available only on the Internet with restricted access and policies and
procedures to protect the integrity and confidentiality of the
information.
The bill was approved
33-1 by the Senate in December and 74-0 by the Assembly on
Monday.
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